If Muzak had an elevator pitch, it took about 77 years to deliver. But now, the exit has arrived, thanks to a monstrous $345 million acquisition by Canadian rival Mood Media Corporation. According to Mood, the combined company will have 470,000 commercial locations across 39 countries, with a combined library of 1.7 million tracks and 30,000 original recordings.
And in fairness, only some of that will involve elevators. Muzak—started in 1934—made the concept famous, but these days, its business spans all sorts of in-store music and media. Along the way, 'Muzak' has also become synonymous with 'cheesy music' in everyday parlance, though that's another story.
All baggage aside, Mood's in a similar space, and sees a serious scaling play. But this is also a distressed grab, and one that required serious leverage to acquire. Muzak has a decent revenue stream and client base, though the company recently emerged from a Chapter 11 reorganization. According to stats shared by both companies, the South Carolina-based Muzak clocked revenues of $195 million last year, with EBIDTA of $55 million, though debt levels were well over $200 million last year. Those debt amounts will be handled by Mood, which leveraged credit past $400 million to complete the buy.
And in fairness, only some of that will involve elevators. Muzak—started in 1934—made the concept famous, but these days, its business spans all sorts of in-store music and media. Along the way, 'Muzak' has also become synonymous with 'cheesy music' in everyday parlance, though that's another story.
All baggage aside, Mood's in a similar space, and sees a serious scaling play. But this is also a distressed grab, and one that required serious leverage to acquire. Muzak has a decent revenue stream and client base, though the company recently emerged from a Chapter 11 reorganization. According to stats shared by both companies, the South Carolina-based Muzak clocked revenues of $195 million last year, with EBIDTA of $55 million, though debt levels were well over $200 million last year. Those debt amounts will be handled by Mood, which leveraged credit past $400 million to complete the buy.
